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19WE OF
GEE & JENSON July 18, 1990 8 jg90 '2
Village of Tequesta !
Post Office Box 3273 ,p N
Tequesta, Florida 33469-0273 W
Attn: Mr. Thomas G. Bradford, Village Manager
Re: Water System, Rate Adequacy and Step Gallonage Rates
Dear Mr. Bradford:
Pursuant to our agreement, dated May 3, 1990, we are pleased to
present herein our findings and recommendation as to the adequacy
of the Water System's (the System) revenues and the gallonage
rates for various levels of usage.
We have obtained and analyzed certain data reflecting the metered
flow of the various users in the System. Our analysis indicated
that a typical single family residential connection uses
approximately 11,800 gallons per month, as shown in Table 1
together with average flows of other user classes.
TABLE 1
METERED WATER ANALYSIS
Residential
Type Meters Units Flow * Flow/Unit
-----------------------------------------------
Single Family 3,888 3,900 45,927 11,800
Multi -Family 73 1,846 17,474 9,500
----------------------------------------
3,961 5,746 63,401 11,000
Commercial, Government, and Irrigation (Non -Residential)
Meter
ERC
# of
Size
----------
Factor
---------
Meters
---------
Flow *
Flow/Unit
5/8"
1.0
-----------
243
-----------
2,033
8,400
1.0"
2.5
59
2,389
40,500
1.5"
5.0
21
1,198
57,000
2.0"
8.0
27
3,067
113,600
3.0"
15.0
0
0
NA
4.01'
25.0
3
486
162,000
6.0"
50.0
0
0
NA
* in thousands of gallons
One Harvard Circle • West Palm Beach, Florida 33409-1923 • 407/683-3301 . FAX 407/686-7446
ON
Village of Tequesta
Attn: Thomas Bradford
July 18, 1990 - Page 2
Our analysis further indicated that 89 percent of the total flows
occurred within the current first step rate increment of 30,000
gallons or less per month, 7 percent of the total flow was
between 30,000 and 50,000 gallons per month and 4 percent of the
total flow was above 50,000 gallons per month, as shown on Table
2.
TABLE
2
METERED WATER
BY STEP
THREE MONTH
SUMMARY
(in thousands
of gallons)
OF
AREA
---------------- -------
STEP 1
STEP 2 STEP 3
TOTAL
TOTAL
Jupiter Inlet
-------
12,5-8
-------
1,798
935
------- -------
15,230
7%
% of total
82%
12%
6%
Palm Beach County
32,369
1,249
368
33,986
16%
of total
95%
4%
1%
Martin County
49,997
7,359
6,695
64,051
29%
% of total
80%
11%
9%
Jupiter
19,469
206
611
20,286
9%
% of total
96%
1%
3%
Tequesta
80,310
3,663
1,043
85,016
39%
% of total
95%
4%
1%
--------
TOTAL CONSUMPTIONS
197,646
-------- ------
14,275
9,652
-------
218,569
% of total
89%
7%
4%
The monthly billable flows for the current fiscal year has ranged
between 75,407,000 and 60,833,000 gallons, an average of
69,936,000 gallons. Billable flows for fiscal year 1991 are
anticipated to average approximately 70,350,000 gallons per
month. This amount includes an a2llowance for an anticipated
increase of 60 Equivalent Residential Connections ( E R C ) during
the year and that as a minimum voluntary conservation measures
will continue. The flow from areas which are currently subjected
to surcharges averaged 31,400,000 gallons per month during the
four month review period and are anticipated to remain
approximately the same.
GEE & JENSON
ON
Village of Tequesta
Attn: Thomas Bradford
July 18, 1990 - Page 3
Water conservation has been and is expected to remain a major
issue with South Florida communities; therefor consumption
incentives/deterrents as currently provided in the Villages rate
structure are appropriate to encourage and promote conservation.
We have reviewed the current step rate increase gallonage
allowances and recommend the following step gallonage allowances
and rates.
A. STEP GALLONAGE ALLOWANCES
Residential
All single and master metered connections
STEP
1
0
through
15,000 gallons
STEP
2
15,001
through
30,000 gallons
STEP
3
30,001
gallons
and above
The step allowances for Multi -Family Residential master metered
connections will be an amount equal to the above residential step
allowances times the number of dwelling units.
B.
All Non -Residential
GALLONAGE
All user
STEP 1
STEP 2
STEP 3
Meter
Size
-------------
5/8°
1.0"
1.51'
2.0"
3.0"
4.0"
6.0"
RATES:
classes
STEP 1
BELOW AND
INCLUDING
15,000
37,500
75,000
120,000
225,000
375,000
750,000
STEP 2
BELOW AND
INCLUDING
30,000
75,000
150,000
240,000
450,000
750,000
1,500,000
STEP 3
ABOVE AND
INCLUDING
30,001
75,001
150,001
240,001
450,001
750,001
1,500,001
$1.05
PER
1,000
GALLONS
$1.85
PER
1,000
GALLONS
$3.20
PER
1,000
GALLONS
GEE & JENSON
J
Village of Tequesta
Attn: Thomas Bradford
July 18, 1990 - Page 4
Our review of the Operating and Maintenance Expenses (0&M)
budgeted proposed by the Village for fiscal year 1991 of
$1,428,500 was in relative concurrence with current operations
and historical trends. Debt service and associated costs for
fiscal year 1991 is projected at 5312,240. Total expenditures,
not including capital outlay for major items is projected to be
$1,740,740.
Revenues are projected from several sources including user fees
and charges, interest earnings and miscellaneous income. The
proposed budget prepared by the Village indicates that revenue
associated with connection charges, fire hydrant rent and
interest/miscellaneous will amount to $126,000. In addition to
these amounts user fees and charges from both the minimum monthly
charges and gallonage charges are anticipated at $2,127,000,
which includes a surcharge of 25 percent of the total water bill,
as shown below in Table 3.
TABLE 3
PROJECTED REVENUE & EXPENDITURES
REVENUES
WATER SERVICE CHARGES
GALLONAGE CHARGES
CONNECTION CHARGES
FIRE HYDRANT CHARGES
INTEREST
TOTAL REVENUES
0&M EXPENSES
NET REVENUE
DEBT SERVICE
BALANCE
COVERAGE
$777,000
1,350,000
15,000
11,400
100,000
$2,253,400
1,428,500
$824,900
312,240
$512,660
2.67
GEE & JENSON
ON
Village of Tequesta
Attn: Thomas Bradford
July 18, 1990 - Page 5
The total revenues indicated above are based on the existing base
monthly charges, the recommended gallonage step rates discussed
in this letter, a 25 percent surcharge for those connections in
Palm Beach and Martin Counties and other revenues as projected by
the Village. The projected net revenues for fiscal year 1991
exceed the minimum coverage requirement of 1.25.
It is our recommendation that the Village proceed to:
1. Implement the step gallonage allowance and
corresponding gallonage rates as discussed herein.
2. Increase the existing surcharge to 25 percent on
total water bill and other applicable charges for
connection in Palm Beach and Martin Counties.
3. Have all rates and surcharges effective as of the
first billing period in October, 1990.
We wish to thank the Village for the opportunity to be of service
in this matter, and express our appreciation for the assistance
received from the Village staff.
Very truly yours,
Marco H. Rocca, CMC
MHR/mr
#90-315
cc: Thomas Hall
GEE & JENSON